How to Avoid Demurrage Charges at Indian Ports
Demurrage and detention charges are among the most frustrating and avoidable costs in logistics. Understanding what they are and how to prevent them can save your business significant money.
What is Demurrage?
Demurrage is a charge levied by the shipping line when a container remains at the port beyond the free time allowed (typically 3-7 days). It's charged per container per day and can escalate quickly — sometimes ₹5,000-₹15,000 per container per day.
What is Detention?
Detention is charged when you keep the container outside the port (at your warehouse) beyond the free period. It's different from demurrage but equally costly. Together, demurrage and detention can add lakhs to your logistics costs.
Tip 1: Pre-Arrival Documentation
File your Bill of Entry before the vessel arrives. ICEGATE allows advance filing up to 30 days before arrival. This ensures customs processing begins immediately upon arrival, minimizing port dwell time.
Tip 2: Keep Documents Ready
Have all documents — invoice, packing list, BL, certificate of origin, licenses — ready before the vessel sails. Last-minute document collection is the primary cause of clearance delays.
Tip 3: Engage Your CHA Early
Brief your CHA as soon as the shipment is booked. Share all documents immediately. Don't wait until the vessel arrives to start the clearance process.
Tip 4: Monitor Free Time Carefully
Know exactly how many free days you have at each port. Track your container's arrival date and calculate when demurrage will start. Set reminders and escalate if clearance is taking longer than expected.
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